Glossary of Terms

Understand key logistics, shipping, and freight forwarding terms used across global trade

NameShort Description

A.C.P. (Autoridad del Canal de Panama)

The governing body responsible for managing the operations of the Panama Canal, essential for global maritime trade.

A/P (Additional Premium)

Extra insurance fees are charged when an insured risk increases, ensuring adequate coverage during the original policy period.

A/S (After Sight)

Payment conditions require buyers to pay after inspecting goods, ensuring fairness in transactions, and protecting both parties' interests.

AA (Always Afloat)

A vital term in shipping that indicates the ability of a vessel or cargo to remain buoyant and secure during transport, ensuring safety and stability.

AA AA (Always Afloat, Always Accessible)

Crucial maritime term ensuring cargo remains buoyant and retrievable during shipping, vital for safety and compliance.

AB (Able Seaman)

A vital role in the maritime industry, supporting vessel operations and ensuring safety on board through a range of essential skills and responsibilities.

Abaft

Nautical term referring to the rear or aft part of a vessel, crucial for understanding ship navigation and positioning.

Abaft the Beam

The position behind the front of a vessel, relative to its bow, is crucial for navigation and vessel operations.

Abandon

The situation where goods cannot be delivered as planned, often due to loss, damage, or unforeseen circumstances during transportation.

Abatement

A reduction or deduction in charges or fees originally agreed upon due to unforeseen circumstances affecting cargo delivery.

Abeam

The position of an object or target directly to the side of a ship or aircraft, at a 90-degree angle to its direction of navigation.

Aboard

The point at which cargo or passengers are placed onto a vessel, aircraft, or transport unit, indicating they are set for departure.

Above-Water Hull

Portion of a ship's hull that is above the waterline, crucial for stability and functionality.

Absolute Bearing

The angle measured in degrees from true north to a specific object or location, playing a vital role in accurate marine navigation and operational safety.

Absorption

The practice of carriers absorbing shipping costs instead of passing them on to customers impacts pricing and business relationships.

Acceptance of Goods

The process involves a receiver taking delivery of products, confirming they meet agreed contractual terms, and acknowledging ownership transfer.

Accessorial Charges

Additional fees that arise in transportation beyond standard service costs significantly affect logistics and supply chain operations.

Accessorial Services

Additionally, tailored services in logistics that enhance flexibility, addressing specific client needs beyond standard shipping.

Accrual Accounting

Accounting method that records revenues and expenses when they are incurred, providing a true reflection of a company's financial position.

ACOL (After Completion of Loading)

The completion of cargo loading onto a vessel marks a vital transition in the shipping process.

Acquiescence

The silent acceptance of terms and conditions impacting agreements and responsibilities between logistics parties.

Act of God

Unpreventable natural events that exempt parties from contractual obligations due to unforeseen circumstances.

Act of Man

The 'Act of Man' refers to events caused by human actions or negligence, distinguishing them from natural events categorized as 'Acts of God.'

Activity-Based Costing

Managerial accounting method that allocates indirect costs accurately, providing detailed insights into the true costs of products and services.

Actual Weight

The complete weight of the cargo, including all packaging materials, is essential for determining freight charges and organizing transport logistics.

Ad Hoc Charter

The hiring of an aircraft for a specific trip, tailored to meet unique transport needs, is ideal for urgent or personalized travel solutions.

Ad Valorem Duty

Tariffs are applied based on the assessed value of imported items, calculated as a set percentage of their worth, and directly impact the final cost of international trade.

Ad Valorem Freight

Calculated as a percentage of the cargo's value, aligning transportation costs with the worth of the shipped goods instead of their weight or volume.

Address Commission

A fee charged by freight forwarders to manage and coordinate the delivery of cargo to its final destination, ensuring accuracy and efficiency.

ADN

A treaty that governs the safe transport of dangerous goods on inland waterways, ensuring compliance and environmental protection during logistics operations.

Advance Filing Rule

AFR mandates the submission of cargo information before shipments arrive at or depart from ports, enhancing security and customs practices.

Advice of Shipment

A crucial document in freight logistics that notifies the consignee about shipment details, including contents, quantity, and expected delivery date.

Advising Bank

A key intermediary in international trade, facilitating documentary credit transactions and ensuring secure communication between exporters and importers.

Advisory Capacity

Expert guidance on logistics strategies, regulatory compliance, risk management, and cost optimization provided by specialized professionals.

Afternoon Watch

A four-hour shift aboard ships, playing a crucial role in navigation and operational tasks from noon to 4 PM.

Agency Tariff

A structured pricing schedule established by freight forwarders and shipping agencies that outlines charges, fees, and rates for their services.

Aggregate Shipment

The consolidation of multiple smaller shipments into a single larger shipment for efficient transportation to a common destination.

Agreed Valuation

Pre-determined value of goods or property established between insurer and insured, ensuring clarity in compensation in case of loss or damage.

Agreed Weight

The mutually established weight of a shipment between the shipper and the carrier, forming the basis for freight charges and compliance with regulations.

Air Draft

The vertical distance between a vessel's waterline and its highest point, crucial for safe navigation under bridges and overhead structures.

Air Freight Forwarders

AFFs are specialized logistics providers that facilitate the air transportation of goods, managing complexities from booking to customs clearance.

Airfreight Handling Fees (AFHF)

AFHF charges are levied for the processing and movement of cargo shipments through air terminals, separate from the base freight rates.

Airline Terminal Fee

Charges assessed by airports for the use of terminal facilities impact both passenger travel and air cargo logistics.

AIS (Automatic Identification System)

Maritime tracking technology that helps identify and monitor vessel positions in real time, supporting safe navigation and efficient traffic coordination at sea.

AIS Base Station

An AIS Base Station is a fixed coastal station essential for the Automatic Identification System (AIS), enhancing maritime safety by facilitating vessel tracking and communication.

All Commodity Rate

Uniform pricing strategy for shipping that sets a standard charge across various commodities, simplifying freight pricing for shippers.

All In shipping rate

Comprehensive pricing model that includes all fees associated with transporting goods from the point of origin to the destination.

All Risk Insurance

Marine insurance policy providing extensive protection against a variety of risks during the transportation of goods.

All Water

Transportation routes that utilize exclusively maritime vessels to move goods between distant ports, bypassing overland options.

All-Inclusive Rate

Pricing structure covering all costs associated with transportation, providing a single upfront price for comprehensive services.

Allotment

Allotment in shipping refers to the pre-arranged reservation of cargo space by shippers on a carrier's vessel, ensuring capacity for their goods over a specified time.

Also Notify Party

Additional recipient of shipping notifications, ensuring all relevant parties are informed about cargo status and updates during international shipments.

Ambient temperature

The air temperature of the surrounding environment, essential for maintaining product quality and operational efficiency across various industries.

American Bureau of Shipping (A.B.S)

Leading global organization dedicated to ensuring safety, quality, and environmental integrity in the maritime and offshore industries.

American National Standards Institute

Key organization in the U.S. that develops and promotes voluntary consensus standards for various industries.

Amidship

The central section of a ship, crucial for balancing loads and ensuring stability during maritime operations.

Annual Bond

A financial guarantee for U.S. importers, ensuring compliance with Customs regulations and timely payment of duties and taxes.

ANSI X-12

ANSI X-12 is a widely accepted standard for electronic data interchange (EDI), enabling efficient and accurate business document exchange.

Anti-dumping duty

A trade policy tool that protects domestic industries from unfair competition caused by foreign goods sold below market value.

Apparent Good Order

The visible condition of goods at the time of receipt by the carrier, indicating no signs of damage during initial inspection.

Authorized Economic Operator

A customs designation that enhances supply chain security and facilitates trade for compliant businesses in international commerce.

Automated Broker Interface (ABI)

An electronic system that streamlines customs transactions by enabling qualified participants to transmit import and export data to U.S. Customs electronically.

Automated Commercial System

The Automated Commercial System (ACS) and its successor, the Automated Commercial Environment (ACE), streamline customs operations and enhance trade efficiency in the United States.

Automated Export System

An electronic platform used for submitting export information to U.S. government agencies, streamlining compliance and documentation for international trade.

Automated Manifest System

An electronic tool by U.S. Customs and Border Protection (CBP) that streamlines cargo data collection for efficient customs processing.

Available Freight Tonne Kilometers

The total cargo space an airline offers, determined by multiplying the freight capacity in tonnes by the distance flown in kilometers.
A.C.P. (Autoridad del Canal de Panama)
The governing body responsible for managing the operations of the Panama Canal, essential for global maritime trade.
A/P (Additional Premium)
Extra insurance fees are charged when an insured risk increases, ensuring adequate coverage during the original policy period.
A/S (After Sight)
Payment conditions require buyers to pay after inspecting goods, ensuring fairness in transactions, and protecting both parties' interests.
AA (Always Afloat)
A vital term in shipping that indicates the ability of a vessel or cargo to remain buoyant and secure during transport, ensuring safety and stability.
AA AA (Always Afloat, Always Accessible)
Crucial maritime term ensuring cargo remains buoyant and retrievable during shipping, vital for safety and compliance.
AB (Able Seaman)
A vital role in the maritime industry, supporting vessel operations and ensuring safety on board through a range of essential skills and responsibilities.
Abaft
Nautical term referring to the rear or aft part of a vessel, crucial for understanding ship navigation and positioning.
Abaft the Beam
The position behind the front of a vessel, relative to its bow, is crucial for navigation and vessel operations.
Abandon
The situation where goods cannot be delivered as planned, often due to loss, damage, or unforeseen circumstances during transportation.
Abatement
A reduction or deduction in charges or fees originally agreed upon due to unforeseen circumstances affecting cargo delivery.
Abeam
The position of an object or target directly to the side of a ship or aircraft, at a 90-degree angle to its direction of navigation.
Aboard
The point at which cargo or passengers are placed onto a vessel, aircraft, or transport unit, indicating they are set for departure.
Above-Water Hull
Portion of a ship's hull that is above the waterline, crucial for stability and functionality.
Absolute Bearing
The angle measured in degrees from true north to a specific object or location, playing a vital role in accurate marine navigation and operational safety.
Absorption
The practice of carriers absorbing shipping costs instead of passing them on to customers impacts pricing and business relationships.
Acceptance of Goods
The process involves a receiver taking delivery of products, confirming they meet agreed contractual terms, and acknowledging ownership transfer.
Accessorial Charges
Additional fees that arise in transportation beyond standard service costs significantly affect logistics and supply chain operations.
Accessorial Services
Additionally, tailored services in logistics that enhance flexibility, addressing specific client needs beyond standard shipping.
Accrual Accounting
Accounting method that records revenues and expenses when they are incurred, providing a true reflection of a company's financial position.
ACOL (After Completion of Loading)
The completion of cargo loading onto a vessel marks a vital transition in the shipping process.
Acquiescence
The silent acceptance of terms and conditions impacting agreements and responsibilities between logistics parties.
Act of God
Unpreventable natural events that exempt parties from contractual obligations due to unforeseen circumstances.
Act of Man
The 'Act of Man' refers to events caused by human actions or negligence, distinguishing them from natural events categorized as 'Acts of God.'
Activity-Based Costing
Managerial accounting method that allocates indirect costs accurately, providing detailed insights into the true costs of products and services.
Actual Weight
The complete weight of the cargo, including all packaging materials, is essential for determining freight charges and organizing transport logistics.
Ad Hoc Charter
The hiring of an aircraft for a specific trip, tailored to meet unique transport needs, is ideal for urgent or personalized travel solutions.
Ad Valorem Duty
Tariffs are applied based on the assessed value of imported items, calculated as a set percentage of their worth, and directly impact the final cost of international trade.
Ad Valorem Freight
Calculated as a percentage of the cargo's value, aligning transportation costs with the worth of the shipped goods instead of their weight or volume.
Address Commission
A fee charged by freight forwarders to manage and coordinate the delivery of cargo to its final destination, ensuring accuracy and efficiency.
ADN
A treaty that governs the safe transport of dangerous goods on inland waterways, ensuring compliance and environmental protection during logistics operations.
Advance Filing Rule
AFR mandates the submission of cargo information before shipments arrive at or depart from ports, enhancing security and customs practices.
Advice of Shipment
A crucial document in freight logistics that notifies the consignee about shipment details, including contents, quantity, and expected delivery date.
Advising Bank
A key intermediary in international trade, facilitating documentary credit transactions and ensuring secure communication between exporters and importers.
Advisory Capacity
Expert guidance on logistics strategies, regulatory compliance, risk management, and cost optimization provided by specialized professionals.
Afternoon Watch
A four-hour shift aboard ships, playing a crucial role in navigation and operational tasks from noon to 4 PM.
Agency Tariff
A structured pricing schedule established by freight forwarders and shipping agencies that outlines charges, fees, and rates for their services.
Aggregate Shipment
The consolidation of multiple smaller shipments into a single larger shipment for efficient transportation to a common destination.
Agreed Valuation
Pre-determined value of goods or property established between insurer and insured, ensuring clarity in compensation in case of loss or damage.
Agreed Weight
The mutually established weight of a shipment between the shipper and the carrier, forming the basis for freight charges and compliance with regulations.
Air Draft
The vertical distance between a vessel's waterline and its highest point, crucial for safe navigation under bridges and overhead structures.
Air Freight Forwarders
AFFs are specialized logistics providers that facilitate the air transportation of goods, managing complexities from booking to customs clearance.
Airfreight Handling Fees (AFHF)
AFHF charges are levied for the processing and movement of cargo shipments through air terminals, separate from the base freight rates.
Airline Terminal Fee
Charges assessed by airports for the use of terminal facilities impact both passenger travel and air cargo logistics.
AIS (Automatic Identification System)
Maritime tracking technology that helps identify and monitor vessel positions in real time, supporting safe navigation and efficient traffic coordination at sea.
AIS Base Station
An AIS Base Station is a fixed coastal station essential for the Automatic Identification System (AIS), enhancing maritime safety by facilitating vessel tracking and communication.
All Commodity Rate
Uniform pricing strategy for shipping that sets a standard charge across various commodities, simplifying freight pricing for shippers.
All In shipping rate
Comprehensive pricing model that includes all fees associated with transporting goods from the point of origin to the destination.
All Risk Insurance
Marine insurance policy providing extensive protection against a variety of risks during the transportation of goods.
All Water
Transportation routes that utilize exclusively maritime vessels to move goods between distant ports, bypassing overland options.
All-Inclusive Rate
Pricing structure covering all costs associated with transportation, providing a single upfront price for comprehensive services.
Allotment
Allotment in shipping refers to the pre-arranged reservation of cargo space by shippers on a carrier's vessel, ensuring capacity for their goods over a specified time.
Also Notify Party
Additional recipient of shipping notifications, ensuring all relevant parties are informed about cargo status and updates during international shipments.
Ambient temperature
The air temperature of the surrounding environment, essential for maintaining product quality and operational efficiency across various industries.
American Bureau of Shipping (A.B.S)
Leading global organization dedicated to ensuring safety, quality, and environmental integrity in the maritime and offshore industries.
American National Standards Institute
Key organization in the U.S. that develops and promotes voluntary consensus standards for various industries.
Amidship
The central section of a ship, crucial for balancing loads and ensuring stability during maritime operations.
Annual Bond
A financial guarantee for U.S. importers, ensuring compliance with Customs regulations and timely payment of duties and taxes.
ANSI X-12
ANSI X-12 is a widely accepted standard for electronic data interchange (EDI), enabling efficient and accurate business document exchange.
Anti-dumping duty
A trade policy tool that protects domestic industries from unfair competition caused by foreign goods sold below market value.
Apparent Good Order
The visible condition of goods at the time of receipt by the carrier, indicating no signs of damage during initial inspection.
Authorized Economic Operator
A customs designation that enhances supply chain security and facilitates trade for compliant businesses in international commerce.
Automated Broker Interface (ABI)
An electronic system that streamlines customs transactions by enabling qualified participants to transmit import and export data to U.S. Customs electronically.
Automated Commercial System
The Automated Commercial System (ACS) and its successor, the Automated Commercial Environment (ACE), streamline customs operations and enhance trade efficiency in the United States.
Automated Export System
An electronic platform used for submitting export information to U.S. government agencies, streamlining compliance and documentation for international trade.
Automated Manifest System
An electronic tool by U.S. Customs and Border Protection (CBP) that streamlines cargo data collection for efficient customs processing.
Available Freight Tonne Kilometers
The total cargo space an airline offers, determined by multiplying the freight capacity in tonnes by the distance flown in kilometers.